Notes to Accounts of Sonal Mercantile Ltd.

Mar 31, 2015

1. Basis of preparation

The financial statements have been prepared in accordance with the
Generally Accepted Accounting Principles (GAAP) in India. Indian GAAP
comprises mandatory accounting standards as specified under the section
133 of the Companies Act, 2013 read with Rule 7 of Companies (Accounts)
Rules, 2014 and other accounting pronouncements of the Institute of
Chartered Accountants of India.

The financial statements have been prepared on accrual basis and under
the historical cost convention. The accounting policies not
specifically referred, are consistently applied from the past
accounting periods.

2. Terms and rights attached to equity shares

The company has issued only one class of equity share having a par
value of Rs. 10 per share. Each holder of equity shares is entitled to
vote per share. The company declares and pays dividend if any, in
Indian Rupees. The dividend proposed by the Board of Directors is
subject to approval of the shareholders in the ensuing Annual General
Meeting.

3. In the event of liquidation of the company, the holders of equity
shares will be entitiled to receive remaining assets of the company,
after distribution of all the preferential amount. The distribution
will be in proportion to the number of equity shares held by the
shareholder.

4. There is no Micro, Small and Medium Enterprises as defined under
Micro, Small & Medium Enterprises Development Act, 2006 to which
Company owes dues which are outstanding for a period more than 45 days
as on Balance Sheet Date.

5. The above information regarding Micro, Small and Medium Enterprises
has been determined on the basis of information availed with the
Company and has been duly relied by the auditors of the Company.

6. The company is an Investing & financing company and most of the
revenue of the company arise from investing activities. As Provisions of
Accounting Standard (AS) - 17 issued by the ICAI on 'Segment Reporting'
are not been applicable to the Company.

7. Deferred Tax Assets and Liabilities are recognised in respect of
current year and prospective years. Deferred Tax Asset is recognised on
the basis of reasonable / virtual certainty that sufficient future
taxable income will be available against which the same can be
realized.

8. In the opinion of the management, the current assets, loans and
advances have a relaisable value in the ordinary course of business is
not less than the amount at which they are stated in the Balance Sheet.

9. Related party disclosures/ transactions

As per accounting standard 18 on "Related party Disclosure" issued by
the Institute of Chartered Accountants of India the disclosure of
transactions with the related party is as under:

A) Related Party where control exists:

Sunil Kumar (Key management personnel)

Deepika Rathore (Key management personnel)

Anjali Aggarwal (Key management personnel)

B) Individuals owning, directly or indirectly, an interest in the
voting power & Relatives of Such Individuals

Gopal bansal HUF (Huf of Director)

Sunita Bansal (Wife of Director)

Deep chand Singhal (Director)

10. The company has taken an office building on lease, which is
classified as an operating lease. Leases in which a significant portion
of the risks and rewards of ownership are retained by the lessor are
classified as operating leases. Payments made under operating leases
are charged to the Statement of Profit and Loss on a straight- line
basis over the period of the lease. Lease Payment recognized in the
statement of profit & loss for the year is Rs. 1,20,000/-.

11. Particulars Current Period Previous Year
(Rs.) (Rs.)

Earnings/ Remittances and/ or
Expenditure in Foreign Currency Nil Nil

12. Quantitive Information in respect of Opening Stock, Purchases,
Sales and Closing Stock pursuant to Schedule VI of the Companies Act,
1956 are as per list attached.

13. Particulars Current Period Previous Year
(Rs.) (Rs.)

Contingent Liability not provided for Nil Nil

14. Previous Year's Figures have been re-arranged or re-grouped
wherever considered necessary.

15. Figures have been rounded off to the nearest rupees.

16. Figures in brackets indicate negative (-) figures.

Mar 31, 2014

1. Basis of preparation

The financial statements of the company have been prepared in
accordance with generally accepted accounting principles (Indian GAAP).
The company has prepared these financial statements to comply in all
material respects with the accounting standards notified under
Companies (Accounting Standards) Rules, 2006 (as amended from time to
time) and the relevant provisions of the Companies Act, 1956.

The financial statements have been prepared on accrual basis and under
the historical cost convention. The accounting policies not
specifically referred, are consistently applied from the past
accounting periods.

b. Terms and rights attached to equity shares

The company has issued only one class of equity share having a par
value of Rs. 10 per share. Each holder of equity shares is entitled to
vote per share. The company declares and pays dividend if any, in
Indian Rupees. The dividend proposed by the Board of Directors is
subject to approval of the shareholders in the ensuing Annual General
Meeting.

In the event of liquidation of the company, the holders of equity
shares will be entitiled to receive remaining assets of the company,
after distribution of all the preferential amount. The distribution
will be in proportion to the number of equity shares held by the
shareholder.

2. There is no Micro, Small and Medium Enterprises as defined under
Micro, Small & Medium Enterprises Development Act, 2006 to which
Company owes dues which are outstanding for a period more than 45 days
as on Balance Sheet Date.

The above information regarding Micro, Small and Medium Enterprises has
been determined on the basis of information availed with the Company
and has been duly relied by the auditors of the Company.

3. Provisions of Accounting Standard (AS) Â 17 issued by the ICAI on
''Segment Reporting'' are not been applicable to the Company.

4. Deferred Tax Assets and Liabilities are recognised in respect of
current year and prospective years. Deferred Tax Asset is recognised on
the basis of reasonable / virtual certainty that sufficient future
taxable income will be available against which the same can be
realized.

5. In the opinion of the management, the current assets, loans and
advances have a relaisable value in the ordinary course of business is
not less than the amount at which they are stated in the Balance Sheet.

6. Related party disclosures/ transactions

There is no transaction entered with the related party covered by the
Accounting Standard (AS) Â 18 on ''Related Party Disclosure'' during the
period covered by these financial statements.

7. Balance shown under head Sundry Debtors, Creditors and Advances
are subject to confirmation.

3 All Accounting Standards and Guidance Notes issued by ICAI are
applicable including for valuation of investments and other assets as
also assets acquired in satisfaction of debts. However, market value in
respect of quoted investments and break- up/fair value/ Nav in respect
of unquoted investments should be disclosed irrespective of whether
they are classified as long term or current in cloumn (5) above.